The crypto market took a hit as President Donald Trump reversed expectations of a diversified U.S. strategic crypto reserve, sending XRP, Dogecoin (DOGE), and Cardano (ADA) down nearly 9% in the past 24 hours.
Bitcoin Gets Trump’s Full Support
Late Thursday, Trump directed his administration to establish a Bitcoin Strategic Reserve, which will hold previously seized BTC, and a separate “crypto stockpile” consisting only of other seized digital assets.
The announcement erased bullish momentum from Trump’s earlier March 2 statement, including XRP, ADA, Ether (ETH), and Solana (SOL) in the reserve. Traders had hoped the U.S. would actively buy and hold these tokens, but those expectations were crushed.
DOGE, ADA, and XRP Crash
DOGE had spiked 12% earlier in the week after Bitwise filed for a DOGE ETF, with traders speculating that it could be included in the reserve. But after Trump’s shift, DOGE, XRP, and ADA tumbled alongside the broader market.
Even Bitcoin, the centerpiece of Trump’s new plan, wasn’t immune. BTC dropped 4.5%, falling from a 24-hour high of $93,000 to under $88,000.
The CoinDesk 20 Index (CD20), which tracks the largest tokens, slid 5%, while smaller altcoins lost up to 10%.
Over $400M in Liquidations
The sudden drop triggered massive liquidations, wiping out $400 million in bullish bets on crypto futures.
- BTC-tracked products accounted for the largest chunk, liquidating $230 million.
- Altcoins followed suit, mirroring Bitcoin’s downturn.
All Eyes on Trump’s Crypto Summit
Now, traders are watching the White House Crypto Summit on March 7, but many aren’t holding their breath for positive surprises.
“Traders have lowered expectations since the strategic reserve announcement failed to live up to the hype,” said Nick Ruck, director at LVRG Research.
“Unless Trump announces a major new initiative with blockchain firms, the market may stay in a risk-off sentiment.”
With key government figures and crypto leaders attending, will the summit revive confidence—or will it signal more volatility ahead?
